I'm in the unfortunate situation of probably filing ch 7 bk. Currently, my FICO scores are about 590 and I'd like to keep as much of that as possible after filing. I have a number of inquiries that I could possibly get removed if I disputed, plus a bunch of CAs that could be validated (not done previously) that might fall off. Then the disputing with the CRAs to get anything and everything removed. Just wondering if I take the time and spend the money now trying to get things off the CR before I file in a month or two is a good thing or not. Maybe it doesn't matter? Anyone know? Also, I have a vehicle '99 with 50k miles that I owe about twice as much as it's trade in value (14k vs 7.5k). If I purchase another car, then choose to give up this upside down vehicle in the bk, is that a good thing or not? The interest rate on the '99 is like 17% or something and I have another 4 years or so on the loan. I know the interest rate on the 'new' car would be that bad, too. But it would be a cheaper car, so it would help out after the bk. My problem in filing ch 7 is that I have too much discressionary income. I need to find ways to reduce that. Getting another car (third) would help in that, but if I give up the '99, I can't include it in the monthly expenses, can I? Also, would having the repo on my CR be worse than just keeping that car? The amount I'm upside down would be included in the bk, right? I know I can refinance my cars for what they're worth at the time I file IF I file a ch 13. Ch 13 is not something I want to do. For me, it's worse than Ch 7. Any suggestions? Thanks! (I still have questions for a lawyer/bk lawyer that I'd prefer are not asked here. My email is open)
Maybe if you disputed the alleged debts that are with collection agencies, you could get enough to disappear that you wouldn't have to file bk at all?? Yes, the amount upside down on your car would be discharged in a ch 7 if you turned in the car. Here's an expense calculator to figure what your discretionary income is. http://www.ca-bankruptcy-attorneys.com/calculators/expense_calculator.html Here's a website to look up your state's exemptions for chapter 7 if you haven't already. http://www.bankruptcyinformation.com/services.html And here's a website where a bk attorney often posts. Look for a post by "Brett Weiss" and his email addy is included. He seems very well informed and generous with his time, and he'll probably answer a personal email. http://chat-cards.com/wwwboard/bankruptcy/messages.html
Yes, I could dispute, but it doesn't make the debt go away, as I understand it. It would remove the CA off my credit report, but the debt still exists with the OC. It still stays on my report, atleast with the OC, as charged off. This is a problem since we cannot qualify for a home loan with $60k+ in charged off debt. I'll check out your links. Thank you for responding. Once discrepancy that I noticed on the calculator is an entry for charitable contributions. The one BK lawyer I spoke with said I can't include the $1000/mo I donate to my church. So, that's $1000 in discresional income I have to get rid of. See what I mean? Keep the ideas coming! I really appreciate it. dabster
I am not sure I agree with your thinking. CH7 is for those with no assets and lower income. You get to toss it all out with only your credit score as a consequence. You cannot "refi" the car for what it is worth in a BK13. What actually happens is that they do what is known as a "cram down". The trustee determines the ACTUAL value of your vehicle and that is ALL the car note holder will get +8% interest. Now, "getting rid of your disposable income".... getting a 3rd car wont do it. First, you don't NEED 3 cars, so the trustee will only let you keep 1 per driver. The others will either go back or will be auctioned off. Filing a BK13 is not a bad idea. The advantages: 1.) you get to keep your assets. 2.) you get to cram down the cost of your financed vehicles. 3.) You will still get out of paying the bulk of non-secured debt. 4.) the BK13 (discharged) will come off your bureau 7 years from the date of filing. A BK7 stays 10. From my experience, it would be wasteful to dispute you CR before the filing. For me, I waited. When I got around to it, most of the junk was already gone! (I paid my BK13 in 24 mo.) Next, I disputed the remaining listings as "not mine", etc. I would guess that 60% of those were gone in the first try INCLUDING A FORECLOSURE!!!! The newer an account is, the more likely it is that the OC or CA will validate. Many CA's toss records on iib's because they will never get anything. Then when you dispute... bye bye CA listing! good luck
In a ch13, with the cram down, am I able to choose whether the auto is included or not? I ask because my other car I owe about 2k less than the retail, which I understand is what they use to determine what your car is really worth.? If this is the case, then I don't want to do a cram down on that one. The other one I would...I think. You said you paid your ch13 off in 24 months. I'm planning to pay mine off early as well, if I go the ch 13 route. Does the cram'd down vehicle payment get included in the monthly payment to the trustee? or is it a separate payment. I thought it was separate, so in that case, does one have to pay that off as well as the required monthly payments to the trustee before the ch13 is discharged?
My attorney had me list all the OC's and below each one listed the CAs collecting on that account. He said that's best in case there's any confusion about who now owns which account or something like that. It's also the best way to make sure everybody quits calling and attempting to collect ASAP. If you have to go back and add another creditor after filing, I believe it costs $$. It was worth it to me to get all 3 CR's because there were items on one that weren't on another.
Re: Re: regarding bk - cleanup cr or not? Thanks Silly. I figured that's what I'd do, but I've got letters from this last year of CAs that don't show up on my CR. I pulled the one online with all three, plus I have a tri-merge from a mortgage that gave it to me. So I know I have the info here, but only two CAs show up. I have about 10-12 OCs that show charge-off. I'm just concerned that I'm going to miss something and get the shaft later on.
I've heard of the "cram down" technique. I believe it is a 722???? Can that be done in a CH. 7 BK? My friend has a new vehicle loan he bought in August that carried over the negative equity from his trade - some $4-5K. Now, he doesn't want to walk away from this car, but can a cram down be done if he is doing a CH. 7? What other options might he have? I know that if he lets the car go, then the interest rate on a purchase would be outrageous - even if he has a large downpayment. Just looking for some opinions. Thanks
Re: Re: regarding bk - cleanup cr or not? dabster, it's not always allowed to pay a CH 13 off early depends on the trustee and laws were you are located. Check with your attorney. Ch 13 could delay you in starting over due to the length of the CH 13 2 or 5 years. You also won't know until you talk to a lawyer about the length required. My advice is to talk to 3 Attorneys to get a feel of how they will handle your case. I could not complete my 5 year CH 13 and have converted to a 7 and Iâ??m so glad to get the shackles off. I was in worst shape in CH 13 then I was before I filed. You are doing the right thing before you file, research. I wish I would have done more of it if I did I never would have filed. I can tell you this a month after I filed CH 13 I started cleaning my credit up it can be done even as you are in 13, just keep at it. Good luck.
